Question: itable ? 4.3 Do Equations ( 4 . 2) and ( 4. 3) hold for forward exchange rates in the interbank currency market ? That

itable ? 4.3 Do Equations ( 4 . 2) and (

itable ? 4.3 Do Equations ( 4 . 2) and ( 4. 3) hold for forward exchange rates in the interbank currency market ? That is , are the equalities Fall = 1 / FA Ild and Fidle Felt Fild = 1 true in a liquid market with small transaction costs ?" 18 C - 2

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